Posted On May 23, 2025

How can small non profits be compliant to remain a 501C3

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American Nonprofit Center >> Non profit compliance >> How can small non profits be compliant to remain a 501C3
How to stay compliant with 501(c)(3)

Staying compliant as a small nonprofit isn’t just about paperwork—it’s about protecting your mission, your credibility, and your tax-exempt status. Whether you’re feeding families, rescuing animals, or supporting your local community, tools like Form 990-N, 990-EZ, and services like File 990 help you stay on track.

Government Grants for Non Profits
Achieving your mission of service involves some paperwork

This article breaks down what you need to file, when to do it, and how to avoid costly mistakes—so you can keep doing the good work that matters most.

How Small Nonprofits Can Stay Compliant and Keep Their 501(c)(3) Status

Starting a nonprofit is often driven by passion—whether it’s feeding families, rescuing animals, or helping local communities. But keeping your 501(c)(3) status takes more than just good intentions. It requires staying compliant with IRS rules.

 

And for many smaller organizations, understanding those rules can feel overwhelming. But there are simple steps you can take to stay on the right path.

Key Compliance Checklist:

  • File Form 990-EZ or 990-N every year
  • Stay within income and asset limits for your filing type
  • Ensure your mission stays aligned with IRS exempt purposes
  • Make your filings publicly accessible
  • Avoid missing three consecutive filings

Here’s the breakdown. If your nonprofit earns less than $50,000 a year, Form 990-N—also known as the e-Postcard—is likely your best option. It’s quick, simple, and has no penalty if you’re late. But don’t ignore it. If you skip it for three years in a row, your tax-exempt status will be revoked automatically.

 

If your organization brings in more than $50,000 but less than $200,000 in gross receipts and under $500,000 in assets, then Form 990-EZ is what you need. It’s a bit more detailed and has late penalties, so don’t let deadlines sneak up on you.

Services like File 990 have emerged to make these filings easier. While they aren’t full accounting firms, they do help small nonprofits navigate the 990 filing process smoothly. That way, you can stay focused on your mission—not the paperwork.

Another point to remember—both Form 990-N and 990-EZ are public records. That means donors and the community can view them. Accurate, timely filings show transparency and build trust with your supporters.

In the end, staying compliant helps protect your mission. It lets you keep doing the good work your community depends on. And with the right tools, it’s easier than you think.

Call us today: (800) 969-7433

CPA Firm

Rojas and Associates

Charity Auditor for not-for-profit organizations. Large enough to handle your complex needs but small enough to provide that personalized touch.

 

 


This article is about:

Remaining a Not for Profit 501c3 

501C3 Compliance 

How to file your IRS not-for-profit status documents

American Nonprofit Center

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